天美麻花星空九一

Dear Investors,

YG Group-KY (1589) hereby announces its financial results for the 2^nd quarter of 2022.

2022 Q2 Financial Results

w   Consolidated revenue for the quarter was NT $ 2.33 billion, an increase of 29% from the previous quarter and an increase of 4% from the same period last year. The revenue composition ratio of each product segment is renewable energy (42.3%), injection molding machines (27.3%), and industrial machinery (30.4%).

w   The tonnage shipped during the quarter was 47,349 tons, an increase of 27% from the previous quarter and a decrease of 6% from the same period last year.

w   Consolidated gross margin for the quarter was 13%, an increase of 2 percentage points from the previous quarter's 11%; a decrease of 7 percentage points from the 20% for the same period last year.

w   The net operating margin for the quarter was -1%, an increase of 6 percentage point from the previous quarter's -7%; a decrease of 4 percentage points from the same period last year’s 3%.

w   After-tax net loss for the quarter was NT$ 91 million, after-tax net loss for the previous quarter was NT$ 196 million, and after-tax net profit for the same period last year was NT$ 141 million; this quarter ’s earnings per share was  NT$ -0.81, net profit per share for the previous quarter was NT$ -1.75, and net profit per share for the same period last year was NT$ 1.27.

w   In the first half of the year, the cumulative consolidated revenue was NT$4.14 billion, the cumulative net loss after tax was NT$ 288 million, and the EPS was NT$ -2.56.

Operational Outlook

The following statements about future prospects are based on expectations of the current situation, but at the same time subject to known or unknown risks or uncertainties. Please refer to the attached "Disclaimer".

w   Benefiting from the gradual decline of COVID-19 cases in mainland China, the company's major customer locations such as the Yangtze River Delta, the Pearl River Delta and other regions have been gradually lifting their travel restrictions. Thus our shipment volume in the second quarter increased significantly, and idle inventory volume decreased as well. Only the gross profit margin is limited by the fact that the market price of raw materials and consumables is still high and the company's increasing of selling prices generally comes a few months after the increase in production costs. Therefore, the gross profit margin only increased slightly by 2%.

In addition to increasing selling prices and actively developing new customers in high-margin industries, we will also focus on improving production line automation and prepare for the increasing demand of large-scale industrial machineries, adding energy conservation and environmental protection measure in our facilities, and focusing on new, higher-margin markets that traditional foundries cannot enter. These new market includes offshore wind turbines, large-scale machinery and equipment, and demand from major European and American manufacturers that are concerned about their carbon footprint. According to the current market environment, the prices of major raw materials has seen notable declines, which is expected to allow improvement in our profitability.

w   Looking forward to the third quarter, mainland China has introduced a series of stimulus policies to boost economic performance and we may benefit from the government's demand for orders from industries related to infrastructure and livelihood projects. Provincial government investment subsidies for renewables or water conservancy-related projects will allow the market demand for wind power products, large valves, and other machinery castings to increase.

In addition, although various parts of mainland China are being hit by record-breaking high temperatures and droughts, government policies have clearly stated the guiding principle of protecting people's livelihood as a priority, leading to planned power outages and production restrictions in many industries. However, we are actively adjusting the working schedule of the production line, by changing employee shifts, holiday schedules, and implementing heatstroke prevention to minimize the impact to production output.

In the future, our electricity consumption will adopt more renewables to levels exceeding the policy requirements, in order to be more competitive than other foundries in the future when carbon taxes in Europe and the United States are levied against imports.

In conclusion, we are cautiously optimistic about the shipment performance in the third quarter, as we expect a slight increase compared with that in the second quarter.

Revenue and Shipment by quarter

Investor Relations

Kevin Tsai

Assistant General Manager

Add: 4F., No93, Xinhu 1^St Rd., Neihu Dist., Taipei, Taiwan (R.O.C.)

Tel : +886-2-2791-7198 ext. 17

Mobile : +886-978-705-865

E-mail : ir@ygget.com

Safe Harbor Notice

This presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Except as required by law, we undertake no obligation to update any forward – looking statements, whether as a result of new information, future events or otherwise.